The Effect of a Transfer Program for the Elderly in Mexico City on Co-Residing Children's School Enrollment

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: This paper studies whether the increase in government transfers, induced by an old-age pension program for individuals age 70 and older in Mexico, affects co-residing children's school enrollment, using a regression discontinuity analysis. Results suggest that while household composition and other household-level characteristics do not change significantly at the cutoff age for program eligibility, co-residing children's school enrollment increases significantly. This suggests that public resources for older adults might generate benefits for other age groups. An additional finding is that the increase in school enrollment takes places mostly at the program eligibility cutoff and not before. Given that the program transfer is known and potentially anticipated by individuals who are only a few years away from being eligible, this suggests that households might have credit constraints. Keywords: Government transfers, school enrollment. JEL Classification: J14, I25 Terms of use: Documents inResumen: Este artículo estudia si el incremento en las transferencias gubernamentales, inducido por un programa de pensiones de vejez para individuos con 70 y más años de edad en México, afecta la inscripción escolar de los niños co-residentes, usando un análisis de regresión discontinua. Los resultados sugieren que mientras la composición y otras características a nivel de hogar no cambian significativamente en la edad de corte para elegibilidad del programa, la inscripción de los niños coresidentes aumenta significativamente. Esto sugiere que los recursos públicos para los adultos mayores podrían generar beneficios para otros grupos de edad. Un resultado adicional es que el aumento en la inscripción escolar tiene lugar mayormente en el corte de elegibilidad y no antes. Dado que la transferencia del programa es conocida y potencialmente anticipada por los individuos que están a sólo unos pocos años de ser elegibles, esto sugiere que los hogares podrían tener restricciones de crédito. Palabras Clave: Transferencias gubernamentales, inscripción escolar. Documento de Investigación

The Effect of Noncontributory Pensions on Saving in Mexico

“…These positive effects could partly reflect increased health expenditures expected in households with elderly members, together with increased investments in the education of co-residing children, as suggested by Gutiérrez, Juarez, and Rubli (2017). These positive effects could partly reflect increased health expenditures expected in households with elderly members, together with increased investments in the education of co-residing children, as suggested by Gutiérrez, Juarez, and Rubli (2017).…”

“…In a similar vein, we observe that the federal NC pension raises human capital investments among households whose oldest members are 65-69 or at least 70 years old by 1.4 and 1.6 percentage points, respectively. These positive effects could partly reflect increased health expenditures expected in households with elderly members, together with increased investments in the education of co-residing children, as suggested by Gutiérrez, Juarez, and Rubli (2017). 35 If NC pensions reduce the longevity risk faced by both older households and younger households with elderly relatives, these households might partly shift their investment to less liquid assets, such as human capital.…”

Migration and Co-Residence Choices: Evidence from Mexico

“…35 Sections 4.1 and 4.3 above provide evidence that variations in co-residence choices in migrant households occur at the time or shortly after the occurrence of a migration episode. Nevertheless, the limited length of the observation period in the ENOE does not, per se, allow to rule out the hypothesis that the arrival of a new member could also occur later on, namely when the household of origin of the migrant starts benefiting from the positive income effect due to the receipt of remittances; Gutierrez et al (2017) do not find that the positive income effect induced by the receipt of an old-age pension modifies the composition of Mexican households.…”

The Effect of Non-contributory Pensions on Saving in Mexico

“…Given their age, part of this increase among older households could reflect health investments. However, some of it might also come from increased investments in education of co-residing children, as suggested by Gutiérrez, Juarez and Rubli (2015). 27 The combined impact of the federal and state NC program positively affects saving in human capital for households whose oldest member is 60 to 64 years old, but the opposite holds for those age 65 to 69, and no other impacts are found for other age groups.…”